Reports indicate that Laurel Davis, the former senior vice president in charge of mission and impact at the company, was among those let go, alongside the entire ESG team. Sources mentioned that the staff members were placed on administrative leave.
Attempts to reach out to representatives from Fannie Mae and the Federal Housing Finance Agency (FHFA) were unsuccessful as no immediate response was received.
It was estimated by sources that over 30 members of the ESG team, a part of the broader Mission Team which includes Duty to Serve and Goals, were laid off on Friday. The ESG program is not mandatory by charter.
Additionally, sources revealed that Danny Gardner, the SVP of Mission and Community Engagement at Freddie Mac, was also let go earlier in the month.
These layoffs come in the wake of the Trump administration’s dismantling of diversity, equity, and inclusion (DEI) initiatives, as well as climate-related mandates. FHFA Director Bill Pulte has been leading efforts to remove DEI-based initiatives from the agency and the GSEs, although it is unclear if he played a direct role in the ESG team’s dismissal.
Following recent changes in leadership and the termination of Freddie Mac head Diana Reid, Pulte stated on social media that he did not anticipate further executive changes at Fannie Mae and Freddie Mac. He expressed a focus on growth, affordability of homes, combating mortgage fraud, and providing career opportunities to those contributing to the success of Fannie Mae and Freddie Mac.
Pulte invited feedback from users on improvements to the GSEs, emphasizing ongoing efforts to introduce new programs and products. Earlier this month, he revoked two DEI-focused policy orders before publicly discussing his strategy for reforming the GSEs.
“Fannie Mae and Freddie Mac have long been plagued by inefficiencies and excessive spending — that ends now,” Pulte declared in a post on X. “Our goal is to operate these businesses in a manner that benefits the American people, ensuring a safe, stable, and affordable housing market.”
Pulte, as the chairman of both Fannie Mae and Freddie Mac, has reversed various climate initiatives introduced during the Biden administration and mandated a return to in-office work for both companies.